Gold down to $1,218 and dollar up a hair. I am still looking at lower prices but not saying we have topped yet until we get under $1,200 in gold.
Some comments I have made recently on various sites:
Regarding Gerald Celente:
Celente is in the Schiff, John Williams camp and the “doomsday predictions sell” type of analysts. Like Schiff, he is a good orator. 2010 he predicted a financial collapse (this is when I first started tracking his predictions); https://www.youtube.com/watch?v=cEjhz8cTNUw 2011 Collapse: It’s Coming! Are You Ready? http://archive.lewrockwell.com/celente/celente71.1.html Dire Predictions For 2012 http://disinfo.com/2011/12/gerald-celentes-dire-predictions-for-2012/ Gerald Celente on 2013, Gold and Silver and WW III http://usawatchdog.com/2013-more-of-the-same-but-worse-gerald-celente/ 2014 he predicted a financial collapse;https://www.youtube.com/watch?v=DADfTSS-GGo 2015 The Great Panic Of 2015 Is Now On http://kingworldnews.com/gerald-celente-great-panic-2015-now/ 2016 “The Panic of 2016 Has Begun” https://www.youtube.com/watch?v=FuhAko_HWWU
Glass half full vs. half empty:
Please don’t take offense to anything I say here. That’s not my point, but I do try and make sense now and then as I have seen most everything in my line of work. One has to remember the Fed is still relevant. I got caught up for awhile when I followed Ron Paul, well before he because a presidential candidate. That’s what happens when the first book you read on the issue is Griffin’s “The Creature from Jekyll Island.” All we really want is a currency we can trust. That’s all anyone wants. To consider any potential currency crash one would have to ignore that our economy grows every year, at least for now. We are not Zimbabwe or can’t be compared to past countries who experienced hyperinflation as the dollar is still used in 70% of the world. We are the “go to” currency, not one that would be disbanded. Plus we have the largest military that can change course anytime we feel like it. A gold standard would mean less money (fiat as it is and in unlimited supply) to do many of the things we have done to create more wealth in this country. What you are expecting at some point, as well as Celente, Schiff, Williams, is some sort of collapse because of this high burden of debt. Yet our Debt to GDP ratio is better than most of Europe’s countries and Japan’s and those represent 71.2% of the Dollar Index. I see problems there first, that of course can spill over to our shores, but money should flow to our shores and actually boost the dollar if this is true. For the dollar to go to toilet paper you have to have loss of confidence in it. If you bring up a dollar crash to most people on the street they may think you wear a tinfoil hat, and that’s something you don’t want someone to say. The point is, you can be right about things but go broke before being proven right. You can also lose a lot of credibility. Best to use resources like Avi and his group and get more opinions and maybe read more from those who see the glass half full too like George Gilder or balance out Zerohedge/Lew Rockwell (always bearish) with some CNBC (always bullish), and as much as I despise CNBC. Food for thought.
Regarding the Fed:
If the majority of people in the U.S. think a wolf is a sheep, it’s a sheep until the tide in thinking shifts. My father, who was a commodities broker at the CBOT, when I was a kid was handing me printed reports from the naysayers and that was in the 70’s, so I have a few decades of hearing the story. I criticize the heck out of the Fed and deservedly so in my next book but I also state that we as a nation have it better than most on planet earth. It is actually government that will mess things up imho. Central Bank policy is part of the problem but who created the Fed? Congress. Who lives beyond their means? Congress. Who calls a balanced budget 9 years of spending more than receipts and 1 year of balance? Congress. As Avi says, gold will do what it does without all the noise in the background. We can play a trend with or without Congressional policy. Let them implode whenever they implode while we concentrate on making money. And as far as banks go, I attack the big ones for good reason in the book. It is incredible what they get away with. Who can you thank? Congress. Yes, I do realize the Fed is the bankers bank, and they did take care of their brothers quite well after the last crisis. We can’t discount their importance just yet.
Related posts
About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.